Letting Agents Are Fleecing Tenants Out Of Up To 600 Pounds In Non-Refundable Fees
- 22 Oct
According to Rentify, an online service for tenants and landlords, agents charge an average administration fee of £220 to secure a rental property in London.
24 dash.com also reported that nearly 25% of the London letting agents surveyed by Rentify charge over £300 in administration fees, with the most expensive agent charging £600 in East Ham.
Rentify CEO George Spencer said:
"As if it wasn't bad enough that letting agents charge these unnecessary administration fees to tenants, some of these charges are also passed onto the landlord so the agent makes double the profit. These fees lack transparency and are simply unfair. Sometimes they cause tenants to pull out of properties because they have not been disclosed upfront, or budgeted for.
Administration costs varied significantly across different agents and areas, with some not charging any additional fees.
And those that do charge them - on top of the standard deposit and one month's rent in advance - claim that drafting tenancy agreements and conducting reference and credit checks are the cause of the cost.
However, according to Rentify the time spent doing this work is 90 minutes, which means the letting agent is charging the tenant £146 per hour to complete the tasks.
The survey also found that the average fee for a credit check was £50 - a task that costs letting agents less than 20p if bought wholesale, which is usual practice for larger agents.
Mr Spencer added:
"The Advertising Standards Authority has ruled that from next month these costs must be clearly displayed in adverts alongside rental prices but there is no onus on agents to make their charges fairer, or better still, remove these unnecessary fees completely.
"These figures are especially interesting in the light of communities secretary Eric Pickles' recent promise to cut down on rogue agents through compulsory redress schemes. Perhaps Mr Pickles could have gone further by seeking to introduce new regulations, such as a qualification scheme for agents. At the very least, Rentify's research lends strong support to the view that urgent action is required."
- 17 Aug
HOMELESSNESS POLICY IS UNDER REVIEW IN A NORTHAMPTONSHIRE COUNCIL
Kettering Borough Council has amended its letters to homeless residents to let them know of their right to request a temporary accommodation review.According to an ombudsman, Michael King:"People in...
- 15 Aug
FINANCIAL CONSTRAINTS HAVE CAUSED THE CLOSURE OF MANY CHILDREN AND YOUTH CENTRES
Local Government Association (LGA) made the following findings:Chair of the LGA's children and young people board, Richard Watts, said: "The reality is that services for the care and protection of...
- 11 Aug
RESIDENTS OF BUILDINGS IN LEDBURY ESTATE, SOUTHWARK, SOUTH LONDON WILL BE MOVED OUT TEMPORARILY
The buildings in Ledbury Estate in Southwark have been constructed in a similar way to Ronan Point, a tower block in Newham which collapsed in 1968 as a result of a gas explosion, killing three. An...
- 10 Aug
THERE IS A DECLINE IN THE HOUSING MARKET IN LONDON AND OTHER PARTS OF THE SOUTH EAST OF ENGLAND
The Royal Institution of Chartered Surveyors (Rics) made the following findings:Chief Economist at Rics, Simon Rubinsohn:"Sales activity in the housing market has been slipping in the recent month...
- 07 Aug
REPORT FINDS THAT PEOPLE ARE INTENSELY SUFFERING FROM LACK OF AFFORDABLE HOMES IN SCOTLAND
According to the report by "Shelter":Shelter's deputy director, Alison Watson, said:"This report shows the disproportionate impact of Scotland's housing crisis on young people and private renters who...
- 02 Aug
NEW REPORT BY THE PUBLIC ACCOUNT COMMITTEE IN WALES COMMENDS HOUSING ASSOCIATIONS
The report which was put together after nine months of inquiries stated the following:Nick Ramsey, Chair of the Public Accounts Committee, said:"Generally, we found governance and regulation within...
- 31 Jul
LONDON COUNCIL URGES THE GOVERNMENT TO MAKE MEASURES TO END LETTING FEES FOR PRIVATE RENTERS
The London council say urgent action is needed because the government has not provided "a clear timescale to introduce its own measure", Letting Agent Today, reports.Last year, the government had...
- 17 Jul
A NEW SCHEME HAS BEEN PROPOSED TO DEVELOP ARTHUR STREET ESTATE IN LONDON
Wates Residential will help to deliver Orbit's proposed £73m regeneration of an estate in London, after their success with making Larner Road an award winning, 40,000-home, Erith Park, Bexley.Within...
- 13 Jul
LATEST HOUSING SURVEY REVEALS THE CURRENT STATE OF THE HOUSING MARKET
RICS UK Residential Market Survey made the following findings:RICS Chief Economist, Simon Rubinsohn, said:"The latest results demonstrate the danger, however tempting, of talking about a single...
- 10 Jul
NEW DATA PREDICTS THAT THE HOUSING MARKET MAY COLLAPSE DUE TO FALL IN PROPERTY PRICES
According to the UK Residential Market Survey:Professor of Economic Geography at the London School of Economics, said:"We are due a significant correction in house prices."I think we are beginning...
Revenue Optimisation "I am really impressed with Support Solutions and how small organisations are supported with information and training" Susan Harrison (Tenant Support Services)